Dogecoin price fractal suggests DOGE could be due for an explosive 20% advance
- Dogecoin price shed 14% on January 5 as crypto markets collapsed.
- This downtrend seems to be a fractal in play, suggesting that a 20% upswing is likely.
- A four-hour candlestick close below $0.151 will create a lower low, invalidating the bullish thesis.
Dogecoin price has been under a lot of pressure as it hovers around a crucial demand barrier, a breakdown of which could see a massive crash. However, the January 5 drop seems to have given rise to a fractal that hints at a bullish outlook.
Dogecoin price at inflection point
Dogecoin price dropped 14% on January 5 as crypto markets followed Bitcoin’s footsteps. The correction for DOGE seems to have created a bullish fractal that was witnessed after the December 3 crash.
The said fractal contains a triple bottom pattern followed by a dip below the said setup to collect liquidity, leading to a massive run-up. The rally in the last run-up was massive due to Elon Musk’s tweet, but investors can expect a minor rally this time.
Assuming the optimistic narrative plays out, Dogecoin price will retest the immediate resistance barrier at $0.176 after a 14% ascent. Clearing this level will allow DOGE to tag the 50-day Simple Moving Average (SMA) at $0.187. This move will constitute a 20% advance.
DOGE/USDT 4-hour chart
Due to the recent crash, things are looking bleak for Dogecoin price. Hence, the downswing could continue without giving bulls any chance to make a comeback. If such a scenario plays out, DOGE could slide lower, producing a four-hour candlestick close below $0.151.
This development will create a lower low, invalidating the bullish thesis. In this situation, Dogecoin price could revisit the December 4 swing low at $0.129.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
